All Praise is due to Allah Azzawajal, Salutations upon His most Perfect, unique, and cream of creations, the Intercessor of the Sinners, Sayyiduna Rasoolullah Salalahu Ta'ala Alaihai Wa Aalihee Wasallama ~, Upon His Family, Upon His Companions and the Righteous Servants till Doomsday.

Wohi Hai Awwal, Wohi Hai Aakhir, Wohi Hai Zaahir Wohi Hai Baatin
Usi kai Jalwai Usi Sai Milnai Usi Sai Uss Kee Taraf Gai Thai
He is the First and the Last; He lives in the Absence and the Presence;
His own hidden light went to see His own visible existence.
Some people have misunderstood the reality of the Me'raaj of Sayyiduna Rasoolullah (Peace Be Upon Him) due to their lack of knowledge and research. Their ignorance in this field caused more confusion in their hearts because they failed to understand the unique relation between ALLAH and His Beloved Habeeb (Peace Be Upon Him). How true is the comment of Sayyidul-Maka'shifeen Sheikh-e-Akbar Muhiyyudeen ibne Arabi (Radi ALLAH Anh) who said that Me'raaj is a secret in a secret. One has to have sound knowledge of the Qudrat of ALLAH and the Station and Status of His August Rasool (Peace Be Upon Him) before commenting on any matter pertaining to them. Due to the lack of this knowledge some people have wrongfully said that Sayyiduna Rasoolullah (Peace Be Upon Him) did not see ALLAH with his naked eye and also did not proceed to the Divine Arsh on the night of Me'raaj. They say that both these things are impossible for any human being to achieve.
Indeed the illustrious Ulama and distinguished Imams of Islam have in their authentic books expressed in great details on this subject. All these are based on the Ahadith Shareef. The narrators and presenters are all trustworthy Scholars of Deen. This matter is not something that entertains ones personal opinion. It depends solely on the authenticity of solid proof. Hence, confirmation deplores contradiction. Ignorance does not necessarily reject its reality. If one rejects it, one is in fact a liar and a contradictor of the Deen.
Here is proof from QUR'AN, Ahadith-e-Nabawi (Sallallaho Alaihi Wasallam), Sayings of Sahab-e-Kiram and from the writings of great and authentic scholars of Islam that the Messenger of Allah Sallallahu Alaihi Wa Aalihi Wa Sallam did see ALLAH with his naked eyes and he also did proceed to the Divine Arsh on the night of Me'raaj.
The Holy Quran says:
سُبْحَانَ الَّذِي أَسْرَى بِعَبْدِهِ لَيْلا مِنَ الْمَسْجِدِ الْحَرَامِ إِلَى الْمَسْجِدِ الأقْصَى الَّذِي بَارَكْنَا حَوْلَهُ لِنُرِيَهُ مِنْ آيَاتِنَا إِنَّه هُوَ السَّمِيعُ الْبَصِيرُ

Holy is He who carried His bondman by night from the sacred Mosque to the Aqsa Mosque (Aqsa) around which We have put blessings that We might show him Our grand signs. No doubt, He is the Hearing, the Seeing. (Al Isra:1)
Imamul Mufasireen Ash-Shiekh Tibri reported in his commentary "Jami'ul Bayan", "Meraaj was done with both body and soul. If a person says that it was only soul who did the Meraaj or it was only a dream then this will be an insignificant charge.
1. If it so then what would be the evidence of prophet hood in it?
2. How one can name it as a miracle of Prophet (Peace Be Upon Him)?
3. Why the Mushrikeen-e-Makkah refuse to accept it because everything is possible in dream?
4. They actually argue on the possibility of doing a journey of months in little part of night.
5. In the above verse the Almighty said, 'carried His bondman' not 'carried His bondman's soul'
6. 'Abd' is a composite of both body and soul." (Jamiul Bayan, Darul Fikr - Berut, Page 17-18)
Sayings of Prophet (Peace Be Upon Him):
1. Imam Ahmad ibne Hambal (Radi ALLAH Anh) in his Musnad narrates from Sayyiduna Abdullah ibne Abbaas (Radi ALLAH Anh)

Sayyiduna Rasoolullah (Peace Be Upon Him) states, "My Glorious Lord said to me, 'I gave My friendship to Sayyiduna Ibraheem, and spoke to Sayyiduna Moosa, and O Muhammad ! I blessed you with My Meeting (where you saw My Divine Being without any obstacles)'".

Sayyiduna Rasoolullah (Peace Be Upon Him) was praising the excellence of Sidratul-Muntaha when I inquired from him, "Ya Rasoolullah! What did you see at Sidratul-Muntaha?" He said, "There I saw the Divine Glory (i.e. of Allah)."
Comments of the Noble Sahaba:
1. Tirmidi Shareef narrates from Sayyiduna Abdullah ibne Abbaas (Radi ALLAH Anh):

The Habeeb of Allah (Peace Be Upon Him), in a short space of time, traveled from Musjid-e-Haraam to Musjid-e-Aqsa. This sacred journey was bright like the brilliance of the full moon.
و بت ترقى الى ان نلت منزلة و من قاب قوسين لم تدرك و لم ترم

The Beloved (Peace Be Upon Him) traveled in the night of Me'raaj until he reached the station of Qaaba Qosain. No creation could reach this height nor possessed the courage to do so.

خفضت كل مقام بالاضافة اذ نوديت بالرفع مثل مفرد العلم
The noble status of the Nabi (Peace Be Upon Him) left everything below him when he proceeded towards the Divine Heights of the Unique Lord, on the Night of Ascension.

Sayyiduna Rasoolullah (Peace Be Upon Him) passed all the Secret Curtains and reached the Divine Absolute Presence of the Supreme Creator, as one reaches one's goal leaving everyone behind. There was no step of excellence in the entire universe that the Master (Peace Be Upon Him) did not surpass. In fact, the Master (Peace Be Upon Him) transcended above the domain of space and time and entered the Station of Qaaba-Qosain and O'adna. Then, ALLAH the Supreme spoke to the Beloved what He had to Say.
8. Imam-e-Humaam Abu-Abdullah Sharfudeen Muhammad (Radi ALLAH Anh) states in Ummul-Qurra:

When Nabi Sulaymaan, was given the wind, it carried him the distance of one months journey in one day. Our Master (Peace Be Upon Him) was given the Buraaq which carried him from the earth to the Arsh in a fleeting moment. The shortest portion of this journey (between earth and the seven skies) takes seventeen thousand years. And Allah only knows the distance above the Arsh to the arcane levels with the Rafraf (to the Divine Presence).
12. It is also recorded in the same Shar'ha Hamziyya:
لما اعطى موسى عليه السلام الكلام و اعطى نبينا صلى الله تعالى عليه و آله و بارك سلّم مثله ليلة الاسراء و زيادة الدنو و الروية بعين البصر و شتان ما بين جبل الطور الذى نوجى به موسى عليه السلام نوجى به نبينا صلى الله تعالى عليه و آله و بارك سلّم

Nabi Moosa, was blessed with Dialogue (Kalaam). Similarly, our Master (Peace Be Upon Him) was blessed on the night of Isra with Divine Presence. He saw Allah from very close range with his naked eye. You cannot compare the experiences of Mount Toor with the experiences of our Master (Peace Be Upon Him) with ALLAH.
13. It is further recorded in the same book:
رقيه صلى الله عليه و سلّم ببدنه يقظة ليلة الاسراء الى السمآء ثمّ الى سدرة المنتهىثمّ الى المستوى ثم ّالى العرش و الرفرف والرويه

It was the exclusivity of Sayyiduna Rasoolullah (Peace Be Upon Him) that he saw Almighty ALLAH with his physical eyes in wakefulness and this is the preferable Madhab. ALLAH Spoke to His Beloved (Peace Be Upon Him) in those high Divine regions which was above all possibilities and imaginations. Imam Ibne Asakar narrates from Sayyiduna Anas ibne Maalik that the Prophet of Allah (Peace Be Upon Him) said, "On the night of Isra my Lord, drew me so close to Him that we were two bows apart, in fact, even closer".
16. It is also stated in the same books:
قد اختلف العلماء في الاسراء واحداواسراء مرّة بروحه و بدنه يقظة و مرّة مناما او يقظة بروحه وجسده من المسجد الحرام إلى المسجد الاقصى ثمّ مناما من المسجد الاقصى إلى العرش فالحق انه اسراء واحد بروحه و جسده يقظة في القصّة كلها و إلى هذامذهب الجمهور من علماء المحدّثين و الفقهاءو المتكلّمين

There was a difference in opinion amongst the Ulama whether there was one Meh'raaj or two, one with the body and soul in wakefulness, and the other in a dream or wakefulness from Musjid-e-Haraam to Musjid-e-Aqsa. Then, from Aqsa in a dream till the Arsh. The truth is that there was one Isra and an entire journey from Musjid-e-Haraam to the Arsh was physical and in wakefulness. This is the Madhab of the majority of Ulama, Muhaditheen, Fuqaha and Mutakallimeen.
17. The same book further states:
المعاريج عشرة (إلى قوله) العاشر إلى العرش

The Holy Quraan was the beautiful character of Sayyiduna Rasoolullah (Peace Be Upon Him) and the Unique characteristics of the Divine Names of ALLAH was found in him. In the Holy Quraan, ALLAH Announces through the praise of His Attributive Qualities of His appearance on the Sacred Arsh. Similarly, Allah The Supreme, blessed His Beloved (Peace Be Upon Him) with the reflection of His Divine Appearance of the sacred Arsh and Praised him. The Arsh is that high station where the Isra of Rasools end. This proves that the Isra of Sayyiduna Rasoolullah (Peace Be Upon Him) was physical because if it was a dream then Almighty ALLAH would have not praised his appearance on the Sacred Arsh. Only the unpleasant reject this reality.
22. Imam Allama Arif-e-Billah Abdul Wahhab Sha'raani (Radi ALLAH Anh), in his Al-Yuwaqeet wal Jawahir, quotes from Sheikh-e-Akbar (Radi ALLAH Anh) that:
انما قال صلى الله عليه و سلّم على سبيل التمدح حتى ظهرت لمستوى اشاره لما قلنا من ان منتهى السير بالقدم المحسوس العرش

Sayyiduna Rasoolullah (Peace Be Upon Him) said, "Then a green Rafraf (Divine Carrier) was laid for me. Its light was even greater than that of the sun. Its brilliance brightened my vision. I was seated on it and taken into the Heavens until I reached the Arsh of ALLAH.
24. He further states:
آورده اند كه جون رسيد ان حضرت صلى الله تعالى عليه و على آله و بارك و سلم بعرش دست زدعرش بدامان اجلال وى

Sayyiduna Muhammad (Peace Be Upon Him) is the most Beloved of Allah and the most unique in creation. He was the only creation to be blessed with physical Me'raaj. He traveled further than the Arsh, Kursi and limitations of time and space.
Conclusion:
A perfect Man is not he who circumfuses the Arsh and whatever it encompasses, namely, the skies, Jannah and Jahannam. But, a perfect Man is he, whose vision surpasses all these dimensions and sees and appreciates the Glory of the Creator, of all these dimensions. (Imam Abdul Wahhab Sha'raani Radi ALLAHo ta'ala Anho)

By the Divine Grace of Almighty Allah, this brief but informative answer will suffice to remove doubts from the hearts and minds of the Muslims. (Insha ALLAH Tabaraka Wa Ta'ala)
Reference Books:

.... Forgive everyone before this Great Month comes to it's end. Forgive everyone only for the Sake of ; Allah Tabaraka Wa Ta'ala Loves those People who forgive, Allah Tabaraka Wa Ta'ala Loves those People who ignore other's mistakes.... Think !!!!
Who are we to think of someone's mistakes when we ourselves are full of mistakes......
Azeem Yaseen